The cost of materials used, labor or service cost, interest, losses, all costs of transportation to the seller, all taxes imposed on the seller, and any other expense of the seller;

Charges by the seller for any services necessary to complete the sale.

N.J.S.A. 54:32B-2(oo)

Charges for such items as travel time, meals, tolls, and mileage billed by a service provider are considered inseparable from the taxable service and are part of the receipt. N.J.S.A. 54:32B-2(oo); N.J.S.A. 54:32B-2(d). Because the service provider is providing a taxable service, all expenses incurred by the seller in providing that service (i.e., overhead costs passed on to the client) are also subject to tax regardless of how billed.
Investigation and Detective Services
Investigation and Detective Services, including detective agencies and private investigators, and fingerprint, polygraph; missing person tracing and skip tracing services are subject to tax effective October 1, 2006. Note that a license to perform such activities is not required in order for the service to be taxable. The tax is imposed on the service, regardless of who performs it.

Sourcing of Investigation and Detective Services
Investigation and detective services are sourced for sales tax purposes where the customer makes first use of the service. First use is deemed to be where the investigative report is delivered. N.J.S.A. 54:32B-3.1.

Resale
Businesses may use a New Jersey Resale Certificate (Form ST-3) or the Streamlined Sales Tax Agreement Certificate of Exemption (uniform form) to purchase tangible personal property which is actually transferred to the purchaser in conjunction with the performance of a taxable service. N.J.S.A. 54:32B-2(e). When purchasing qualified goods or services, the service provider issues Form ST-3 or the Streamlined Sales and Use Tax Agreement Certificate of Exemption to the seller. These forms are available (View Forms)

Since investigative and security services are now subject to tax, the service provider may purchase property and services that are actually transferred to the client without the payment of tax. Examples of such property might include: photographs; video cassettes (for the purpose of surveillance); and printing and copy charges related to the report. The service provider may also provide a resale certificate to another service provider when subcontracting investigative and detective services.

Security Guard and Patrol Services
Sourcing of Security Guard and Patrol Services - Security guard and patrol services are sourced based upon where the customer makes first use of the service. N.J.S.A. 54:32B-3.1. Since security guard and patrol services are specific to an actual location, they are sourced based on the location of the property being guarded. Thus, security guard and patrol services performed at a location in New Jersey are subject to tax.
Armored Car Services
An armored car company may separately sell and charge for armored car services and cash management services. The cash management services are not taxable if they are separately stated from the taxable armored car services. It is presumed that the separate charges for cash management services and armored car service are reasonable in relation to prevailing market prices.

The following services are treated as part of the sales price for the taxable armored car service:

Armored Transportation – delivery and pick up of coin and currency

Excess Bin Charges

Excess Bag Charges

Excess Skid Charges

Emergency Armored Delivery Unscheduled Trips

Federal Reserve Trips

Sourcing of Armored Car Services
If the armored car service is performed entirely within the state, it is subject to sales tax. If the service is not performed entirely within this state, then the service is sourced to the customer's location. Thus, if the customer's location is in New Jersey, regardless of whether goods are picked up or delivered to that location, the service is subject to sales tax.

Security Systems ServicesInstallation Service
Previously, the installation of a security system (i.e., security, burglar, or fire alarms) was not subject to tax if the installation of the system resulted in a capital improvement to real property. On and after October 1, 2006, charges for the installation of security systems are specifically subject to tax. N.J.S.A. 54:32B-3(b)(11).

Thus, the installation of the following types of security systems is subject to tax on and after October 1, 2006:

A hard wired security system, where the wires are placed within the walls

There is no change in the law regarding the taxability of the installation of mobile or portable alarm systems, a closed circuit television system (cameras, monitors, recorders), and an alarm system which is rented or leased. Such installations, which are not considered to result in a capital improvement to the real property, continue to be subject to tax.Purchase of Materials
When sold to individual property owners, other vendors or to contractors, the systems are taxable. The customer may install the system himself or hire an outside contractor to install the system. Either way, the customer is subject to sales tax on the purchase of the equipment.

Monitoring
Although the new law specifically imposes tax upon alarm monitoring service, note that this service has been subject to tax since July 1, 1990, as a telecommunications service.